AugustCole

The Amex Airlines Index ($XAL) fell 4% at 48.14 points, with American Airlines parent AMR Corp.
AMR, +4.54%
leading percentage decliners on an 8.7% drop to $18.76 a share. The session also saw the Dow Jones Industrial Average lose 2% and the Nasdaq Composite indexes end 2.4% lower.

The index is down 5.7% on the week.

Concerns over rising fuel costs crept back into the market as New York traded crude closed up $1.52 to $68.35 a barrel, touching a fresh four-month high as energy traders continue to fret over Iran's nuclear program, supply disruptions in Nigeria, and the latest terror threats from al-Qaida leader Osama bin Laden. See Futures Movers.

AMR had plenty of company in the loss column, with SkyWest Inc.
SKYW, +2.34%
down 5.4% at $26.02 and Continental Airlines Inc.
CAL, -0.04%
losing 3.9% at $17.77.

Southwest Airlines Co.
LUV, +2.08%
was the sole carrier in the index to avert the slide, adding 0.3% to $16.21 a share. The company is also one of the best-shielded from volatile fuel prices, having hedged 75% of its first-quarter fuel purchases.

After Thursday's closing bell, Southwest said its board approved a $300 million share buyback program that it expects will bring about 17.9 million outstanding shares back into the company.

United Airlines received a federal bankruptcy court's go-ahead to exit Chapter 11 next month after spending more than three years reorganizing under protection from creditors, the company. Shares of UAL Corp.
UALAQ
will be worthless when the company emerges from bankruptcy. See full story.

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